CAL BANK LIMITED - The Vault CAL Bank Limited is an indigenous bank established in Ghana in 1990, listed on the Ghana Stock Exchange SUBSIDIARIES 3 WHOLLY OWNED PARTNERS SSNIT 33.2%

CAL BANK LIMITED

H A L F Y E A R 2 0 1 6 I N T E R I M R E S U LT S

PRESENTATION

August 17, 2016

H A L F Y E A R 2 0 1 6 I N T E R I M R E S U L T S | P R E S E N T A T I O N

D I S C L A I M E R

This report was prepared by CAL to provide background information on the Group.The report is issued for information purposes only, especially with regards to enablingusers understand the inherent potential of the business. It is therefore not asolicitation to buy or sell the stock.

The information contained herein is subject to change and neither the bank nor itsstaff is under any obligation to notify you or make public any announcement withrespect to such change.

Users are hereby advised to exercise caution in attempting to rely on this informationand carry out further research before reaching conclusions regarding their investmentdecisions.


T A B L E O F C O N T E N T S

INTRODUCTION & HIGHLIGHTSDzifa Amegashie, Head of Investor Relations

1H16 FINANCIAL PERFORMANCEPhilip Owiredu, Executive Director

QUESTION & ANSWER Moderated by IC Securities (Ghana) Limited

CLOSING REMARKSDzifa Amegashie, Head of Investor Relations


S P E A K E R S

Mr. Philip Owiredu

Executive Director

Mr. Joseph Ofori-Teiko

General Manager

Mr. Charles Amoah

Assistant General Manager

Ms. Dzifa Amegashie

Investor Relations

I N T R O D U C T I O N & H I G H L I G H T S



Operating Environment

CAL Bank Limited Overview


O P E R A T I N G E N V I R O N M E N T : G H A N A M A C R O “ S N A P S H O T ”

I N F L A T I O N

18.4P E R C E N T

26.0P E R C E N T

P O L I C Y R A T E

3.3P E R C E N T

C U R R E N C Y

Currently 16.7% (July 2016) down from 17.1% in June 2015 & down from its

peak of 19.2% in March 2016.

Maintained at 26.0% since November 2015. Up from 22.0% in June 2015

The Ghana Cedi depreciated by 3.3% against the USD in 1H16 compared to

26.1% in 1H15

G D P G R O W T H R A T E

4.9P E R C E N T

Real GDP grew by 4.9% (y-o-y)¹ in 1Q16 compared to 4.5% recorded for

1Q15.

P U B L I C D E B T I N T E R B A N K R A T E

Source: MPC Release – July 2016, Ghana Statistical Service, BoG1. Year-on year estimates compare current economic developments with that of the same period in the previous year. There is little or no influence of seasonal variations

66.6P E R C E N T

Total public debt as a percent of GDP in May 2016, marginally down from 67.9%

in June 2015

25.5P E R C E N T

Interbank lending rate in June 2016, up from 24.1% in June 2015


O P E R A T I N G E N V I R O N M E N T : B A N K I N G S E C T O R

BANKING SECTOR UPDATES

T O T A L A S S E T S

66.1B I L L I O N

42.7B I L L I O N

T O T A L D E P O S I T S

T O T A L A D V A N C E S

Annual growth of 17.7% Annual growth of 19.3% Annual growth of 11.3%

BANKING SECTOR OVERVIEW¹

I N D U S T R Y C A P I T A L

A D E Q U A C Y R A T I O

16.6P E R C E N T

Down from 17.9% in January 2016

I N D U S T R Y N O N -

P E R F O R M I N G L O A N S

Up from 14.6% in January 2016

I N D U S T R Y A V E R A G E L E N D I N G

R A T E

Up from 29.0% in June 2015

» In 1H16, the banking sector had 30 operating

banks up from 29 in 1Q16. Sovereign Bank, an

indigenous bank, began operations in 2Q16:

ᗌ 14 foreign

ᗌ 3 government

ᗌ 13 local banks

» Ghana Home Loans, a leading mortgage financing

company in Ghana, was issued with a provisional

banking license by the Bank of Ghana (BoG) in

July 2016. The license paves way for Ghana Home

Loans to begin operations as a universal bank and

also grow the company.

» Treasury Bills Market:

Source: MPC Release – July 2016, Ghana Statistical Service, BoG

June 16 (%) June 15 (%) % ∆

91-day rate 22.8 25.2 9.5%

182-day rate 24.6 25.9 5.0%

1-year rate 23.0 22.5 2.2%

1. All figures as at May 2016 unless otherwise indicated2. June 2016

31.4B I L L I O N

19.3P E R C E N T

32.7P E R C E N T



Operating Environment

CAL Bank Limited Overview


C A L B A N K L I M I T E D

15Active Corr.

Banks

ISSUED SHARES

548.26 MILLION

MARKET VALUE

438.60MILLION CEDIS¹

PUBLIC FLOAT

36.74PERCENT

26Branches

93ATMs

CHANNELS

SHAREHOLDING STRUCTURE

EMPLOYEES

780PROFESSIONAL

STAFF

CAL Bank Limited

is an indigenous bank established in Ghana in 1990,

listed on the Ghana Stock

Exchange

SUBSIDIARIES

3WHOLLY OWNED

PARTNERS

SSNIT33.2%

ADP I HOLDING 427.7%

OTHERS25.8%

ICAM3.9%

FRONTAURA3.0%

DANIEL OFORI2.5%

FRANK BRAKO ADU, JR

2.2%

CENTUM EXOTICS2.7%

1. Share Price at 30 June 2016 – GHS 0.80

1 H 1 6 F I N A N C I A L P E R F O R M A N C E



1H16 Performance of Listed Banks

CAL 1H16 Performance Highlights

CAL Share Price Performance for the period

CAL Strategy and Outlook


1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S : P R O F I T - A F T E R - T A X

19

6

15

1

73

79

13

16

N/A

21

1

18

8

15

0

66

26

17

EGH GCB SCB CA L SOGEGH HFC UTB

1H15 1H16

G H S M I L L I O N S


1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S : T O T A L A S S E T S

6.8

4.9

3.4

3.1

1.9

1.4

2.1

6.7

5.0

3.7

3.3

2.2

1.7

EGH GCB SCB CA L SOGEGH HFC UTB

1H15 1H16

N/A

TOTAL ASSETS (GHS BILLIONS)


1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S - N P L s

NON PERFORMING LOANS RATIO (%)2

6.3

16

.4

15

.4

1.5

9.0

6.9

51

.7

20

.7

20

.2

17

.5

13

.1

6.1

SCB HFC SOGEGH EGH GCB CA L UTB

1H15 1H16

N/A


1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S : S H A R E H O L D E R R E T U R N S - R O A

4.3

%

6.2

%

5.7

%

5.1

%

1.4

%

2.2

%

8.0

%

7.5

%

6.3

%

4.0

%

2.3

%

2.0

%

SCB GCB EGH CA L SOGEGH HFC UTB

ROA 15 ROA 16

N/A

R O A ( % )

Using annualized 2016 figures


1 H 1 6 G R O U P P E R F O R M A N C E O F L I S T E D B A N K S : S H A R E H O L D E R R E T U R N S - R O E

26

.3%

51

.4%

39

.9%

36

.2%

11

.4%

12

.7%

53

.4%

49

.4%

39

.4%

24

.9%

20

.0%

16

.1%

SCB EGH GCB CA L SOGEGH HFC UTB

ROE 15 ROE 16

N/A

R O E ( % )

Using annualized 2016 figures


1 H 1 6 P E R F O R M A N C E O F L I S T E D B A N K S : S T O C K R E T U R N S

PRICE-TO-EARNINGS RATIO PRICE-TO-BOOK RATIO

3.9

x

3.1

x

1.7

x

1.5

x

1.4

x

1.2

x

2.9

x

2.3

x

1.3

x

0.9

x

0.9

x 1.1

x

S C B E G H H F C G C B C A L S O G E G H

1H15 1H16

12

.7x

5.9

x 6.6

x

3.5

x 4.0

x

7.8

x

11

.5x

5.6

x

5.0

x

2.9

x 3.5

x

0.0

x

S C B E G H S O G E G H G C B C A L H F C

1H15 1H16








C A L S U M M A R I Z E D G R O U P I N C O M E S T A T E M E N T 1 H 1 6

KEY ITEMS (GHS ‘000) 1H2016 1H2015 ΔY/Y

Interest Income 281,589 217,879 29.2%

Interest Expense (137,254) (106,856) (28.4)%

Net Interest Income 144,335 111,023 30.0%

Fees and Commission Income 33,105 36,714 (9.8)%

Fees and Commission Expense (1,759) (2,677) 34.3%

Net Fees & Commissions 31,346 34,037 (7.9)%

Net Trading Income 18,184 39,548 (54.0)%

Other Income 5,943 6,591 (9.8)%

Total Income 199,808 191,199 4.5%

Credit Loss Expense (18,929) (11,136) (70.0)%

Net Operating Income 180,879 180,063 0.5%

Total Operating Expense (82,905) (67,894) (22.1)%

Profit Before Tax 97,974 112,225 (12.7)%

Income Tax Expense (26,841) (28,087) 4.4%

National Fiscal Stabilization Levy (4,865) (5,529) 12.0%

Profit-After-Tax 66,268 78,609 (15.7)%

K E Y F A C T S

Trading income and fees and commissions fell considerably due to general slow down in trading activities

Credit loss expense increased due to additional write-downs of specific corporate loans in the construction sector

Growth in operating expenses in line with inflation and increase in cost of goods and services


I N C O M E A N A L Y S I S 2 0 1 2 - 1 6 N O N - I N T E R E S T R E V E N U E 2 0 1 2 - 1 6

NET INTEREST INCOME and NET INTEREST MARGIN ANALYSIS NON-FUNDED INCOME

31

.2

69

.3

79

.4

11

1.0

14

4.3

9.5

14.3

10.7 10.6

11.6

0

2

4

6

8

10

12

14

16

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

1H12 1H13 1H14 1H15 1H16

GH

S m

illio

ns

NII NIM

43%

48%44% 42%

57%

47%

28%

45%49%

33%

10% 25% 11% 8% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H12 1H13 1H14 1H15 1H16

Net Fees & Commissions Net Trading Income Other Income

55.5m19.9m 30.9m 60.3mTOTAL 80.2m


C R E D I T L O S S E X P E N S E A N D N P L s

CREDIT LOSS EXPENSE

5.1

8.8

6.8

11

.1

18

.9

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

1H12 1H13 1H14 1H15 1H16

GH

S M

illio

ns

NON PERFORMING LOANS

48

.2

55

.2

86

.6

11

2.4

13

1.1

8.1%

6.0%

7.2%

6.9%

6.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

1H12 1H13 1H14 1H15 1H16

GH

S M

illio

ns

NPLs NPL Ratio


P R O F I T D R I V E R S

COST-TO-INCOME-RATIO

40.6%

35.3%

32.3%

35.5%

41.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

1H12 1H13 1H14 1H15 1H16

COST OF FUNDS - CONSOLIDATED

7.3%

10.5%

9.9%

7.6%

10.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

1H12 1H13 1H14 1H15 1H16


C A P I T A L

RETURN ON AVERAGE ASSETS CAPITAL ADEQUACY RATIO

19.1%

17.8%

16.2%

20.1%

20.7%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

17.5%

20.0%

22.5%

1H12 1H13 1H14 1H15 1H16

Regulatory Minimum: 10%

29.7%

41.9%

44.7%41.7%

27.4%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

1H12 1H13 1H14 1H15 1H16

ROAE

4.8%

7.4% 7.3%

6.1%

4.2%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1H12 1H13 1H14 1H15 1H16

ROAA

RETURN ON AVERAGE EQUITY


C A L S U M M A R I Z E D G R O U P B A L A N C E S H E E T 1 H 1 6

KEY ITEMS (GHS ‘000) 1H2016 1H2015 ΔY/Y

Investments in Government Securities 213,555 546,842 (60.9)%

Loans and Advance to Customers 2,048,990 1,581,682 29.5%

Fixed Assets 177,571 92,600 91.8%

Other Assets 842,281 875,230 (3.8)%

Total Assets 3,282,397 3,096,354 6.0%

Total Deposits 1,577,850 1,606,544 (1.8)%

Borrowings 1,042,452 936,981 11.3%

Other Liabilities 129,386 118,585 9.1%

Shareholders Equity 532,709 434,244 22.7%

Total Liabilities and Shareholders Equity 3,282,397 3,096,354 6.0%

K E Y F A C T S

Decrease in investment in government securities as maturing investments were not rolled over to bolster liquidity.

Loans and advances growth of 29.5% mainly in commerce and finance, and energy sectors.

Fixed asset growth of 91.8% over the period primarily from our investment in new IT infrastructure and head office building project.


G R O W I N G A S S E T B A S E 2 0 1 2 - 1 6

TOTAL ASSETS TOTAL ASSET MIX

98

2.3

1,2

82

.8

2,1

00

.9

3,0

96

.4

3,2

82

.4

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

1H12 1H13 1H14 1H15 1H16

GH

S M

illio

ns Cash & Bank

Balances21%

Loans & Advances

55%

Property & Equipment

3%

Investments19%

Other Assets2%1H15

1H16

Cash & Bank Balances

12%

Loans & Advances

72%

Property & Equipment

6%

Investments8%

Other Assets2%


D E P O S I T P O R T F O L I O 2 0 1 2 - 1 6

DEPOSIT MIX BY TYPE

37.9% 45.3% 49.5% 48.3% 44.6%

56.9%

48.5%

44.0% 46.5%47.9%

5.2% 6.2% 6.5% 5.2%7.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1H12 1H13 1H14 1H15 1H16

Current Account Time Deposits Savings Deposits

65.9%70.6% 69.3%

61.3%

77.5%

34.1%29.4% 30.7%

38.7%

22.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1H12 1H13 1H14 1H15 1H16

Local Currency Foreign Currency

DEPOSIT MIX BY CURRENCY


L O A N P O R T F O L I O

Agriculture<1%

Transport, Storage & Communication

2%

Mining & Quarrying

4%

Manufacturing4%

Miscellaneous6%

Government 16%

Services11%

Commerce & Finance

15%

Electricity, Gas & Water16%

Construction26%

LOAN DISTRIBUTION BY SECTOR

89.1% 88.4%84.1% 82.9% 79.2%

10.9% 11.6%15.9% 17.1% 20.8%

1H12 1H13 1H14 1H15 1H16

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Corporate Retail

LOAN DISTRIBUTION BY CUSTOMER TYPE

1H16

1H15

Agriculture<1%

Transport, Storage & Communication

2%

Mining & Quarrying

2%

Manufacturing5%

Miscellaneous5%

Government 11%Services

9%

Commerce & Finance

22%

Electricity, Gas & Water25% Construction

19%


F U N D I N G M I X

66.3% 62.9%

43.9%

53.2%48.9%

19.2%19.6%

16.0%

14.8%17.3%

14.5% 17.5%

40.1%32.0% 33.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1H12 1H13 1H14 1H15 1H16

Deposits Equity Borrowing








S H A R E P R I C E C H A R T J A N - J U N 2 0 1 6

0.00

0.20

0.40

0.60

0.80

1.00

1.20

04-Jan-16 29-Jan-16 23-Feb-16 19-Mar-16 13-Apr-16 08-May-16 02-Jun-16 27-Jun-16

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

GH

S Th

ou

san

ds

Value Traded (GHS) Volume Price (GHS)

Min Price: GHS 0.79Max Price: GHS 1.05


P R I C I N G E V O L U T I O N

PRICE-TO-EARNINGS RATIO PRICE-TO-BOOK RATIO

2.9

5x

6.0

0x

4.1

3x

3.9

6x

3.4

6x

1H12 1H13 1H14 1H15 1H16

0.9

3x

1.9

9x

1.4

9x

1.4

2x

0.8

5x

1H12 1H13 1H14 1H15 1H16

1. Trailing 12-months








2 0 1 6 - 2 0 1 8 S T R A T E G Y & O U T L O O K

People

Technology

Risk Management & Compliance

• Implement a comprehensive performance management and reward systems.

• Deepen staff skills and knowledge.

• Develop and implement structured career progression and succession planning program.

• Enhance organizational competence.

• Implement workplace health and safety program.

• Employ cutting-edge technology to deliver enhanced tailor-made solutions for our corporate customers to offerthem convenience and real-time banking.

• Enhance forex generating capacity to ensure we meet forex needs of our customers.

• Enhance relationship management and product knowledge.

• Leverage on growth in digital and mobile technology to develop cutting edge solutions that will offer customers

convenience and also reach out to the unbanked.

• Enhance transaction and process efficiency through technology.

• Continuous and sustained investments in technology to ensure development of up-to-date, efficient products and

services.

• Enhance loan monitoring and early-detection toolkits to improve quality of loan portfolio.

• Maintain low NPL ratio.

• Continuously develop risk management and compliance culture amongst staff through training and other staffengagements.

• Ensure adherence to regulatory requirements and best practice compliance procedures.

Retail Banking

CorporateBanking

• Develop e-payment platforms with emphasis on digital channels.

• Leverage on growing card schemes to offer diversified card services for enhanced customer experience, positivelyimpacting on our customer base and translating into increased deposits.

• Promote financial inclusion by deploying digital solutions to offer branchless banking services.

• Refresh existing products and services by leveraging on enhanced technology to improve customer experience and

market competitiveness.

34

Q U E S T I O N & A N S W E R P E R I O D

C LO S I N G R E M A R K S

Documents

CAL BANK LIMITED - The Vault CAL Bank Limited is an indigenous bank established in Ghana in 1990, listed on the Ghana Stock Exchange SUBSIDIARIES 3 WHOLLY OWNED PARTNERS SSNIT 33.2%